Wednesday, July 8, 2009
Shift in Global Investors in Florida
The Florida market, one of the hardest hit by the recession, is reporting an increase in sales for existing properties for the 8th consecutive month. The Florida Association of REALTORS® (FAR) reported that existing home sales increased by 18% compared to a year ago, and existing condo sales rose by 21%. While promising, the value of new properties has fallen as much as two-thirds from the 2007 price peak, making a quick recovery of the previously hot development market unlikely. Low prices and the large number of bank-owned distressed properties are attracting investors, including overseas buyers. While Florida has long attracted international buyers, FAR reports a shift of the source of those buyers with Canadians overtaking the British as the largest source of buyers. REALTORS® working with foreign buyers seeking retirement properties in Florida will be interested in an April '09 report from Florida Tax Watch. The report advocates for the introduction of a national retirement visa, but also outlines current visa options
Friday, July 3, 2009
10 Tips for Buying and Selling Condos in Today's Market
A productive cash flow turns the wheels of the condo market - whether you are a buyer or a seller. Most buyers need backing (financing) and sellers need sales. In order to get the best deal, buyers and sellers need to understand the process. Both parties must know how to avoid the pitfalls.
5 Tips for Buyers
1. Financing Comes First Financing issues are responsible for wrecking many deals. Figure out which form of financing works best for you. Remember that pre-approval is the preferred way to go into a deal.
2. Fannie and Freddie May Not Be Friendly Fannie Mae and Freddie Mac, government-controlled mortgage companies, have their place. As of March 2009, however, they tightened their restrictions on mortgages for condos (new or newly constructed). At present, they will only consider mortgages if 70% of the units have sold or are under contract.
3. Know Your Association As people face financial challenges, many are falling behind on association dues. This delinquency forces condo associations to pass on the debt to other condo owners. Fannie Mae won't purchase mortgages for condos if 15% or more are over 30 days late with payments.
4. Look for the FHA Seal of Approval A building with the FHA seal of approval can mean a much lower down payment for many buyers. A down payment can be as low as 3.5% of the purchase price of the condo. The mortgage process also moves much faster for condos with FHA approval. 5. Prepare Your Down Payment Private lenders can require a substantial down payment from condo buyers. Consider your budget and research your options. Seek out condo experts who can find the best deal for you.
5 Tips for Sellers
1. Compare Prices You may be the seller but you still have to compare prices - the sale prices of your competition! To get the most money, you want to set your price at the top rate acceptable to a buyer. You don't, however, want to turn buyers away with unreasonable prices.
2. Go with the Experts Find a condo expert! They have a history with the condo buyer. They can use that expertise to effectively market and build interest in your condo.
3. Create a Counter Offer Sellers must remember that they can create counter offers. If you like a price but don't favor some of the terms, consider a counter offer. Get the best deal for you!
4. Be Willing To Negotiate The best offer comes about when both parties feel they have won points. A seller needs to bargain from a strong position. Try not to be so difficult, however, that you turn away every potential buyer.
5. Consider the Cost of Closing Sellers of condos also have closing costs. These charges can add up so you must factor them into your plan. These costs can include real estate broker fees, processing fees, and transfer taxes. Low interest rates, affordable prices, and government programs are fueling the current condo market. The time is perfect for either buying or selling a condo. Whether you are looking for a home or planning to sell and move on, you can still get the most from today's condo market.
5 Tips for Buyers
1. Financing Comes First Financing issues are responsible for wrecking many deals. Figure out which form of financing works best for you. Remember that pre-approval is the preferred way to go into a deal.
2. Fannie and Freddie May Not Be Friendly Fannie Mae and Freddie Mac, government-controlled mortgage companies, have their place. As of March 2009, however, they tightened their restrictions on mortgages for condos (new or newly constructed). At present, they will only consider mortgages if 70% of the units have sold or are under contract.
3. Know Your Association As people face financial challenges, many are falling behind on association dues. This delinquency forces condo associations to pass on the debt to other condo owners. Fannie Mae won't purchase mortgages for condos if 15% or more are over 30 days late with payments.
4. Look for the FHA Seal of Approval A building with the FHA seal of approval can mean a much lower down payment for many buyers. A down payment can be as low as 3.5% of the purchase price of the condo. The mortgage process also moves much faster for condos with FHA approval. 5. Prepare Your Down Payment Private lenders can require a substantial down payment from condo buyers. Consider your budget and research your options. Seek out condo experts who can find the best deal for you.
5 Tips for Sellers
1. Compare Prices You may be the seller but you still have to compare prices - the sale prices of your competition! To get the most money, you want to set your price at the top rate acceptable to a buyer. You don't, however, want to turn buyers away with unreasonable prices.
2. Go with the Experts Find a condo expert! They have a history with the condo buyer. They can use that expertise to effectively market and build interest in your condo.
3. Create a Counter Offer Sellers must remember that they can create counter offers. If you like a price but don't favor some of the terms, consider a counter offer. Get the best deal for you!
4. Be Willing To Negotiate The best offer comes about when both parties feel they have won points. A seller needs to bargain from a strong position. Try not to be so difficult, however, that you turn away every potential buyer.
5. Consider the Cost of Closing Sellers of condos also have closing costs. These charges can add up so you must factor them into your plan. These costs can include real estate broker fees, processing fees, and transfer taxes. Low interest rates, affordable prices, and government programs are fueling the current condo market. The time is perfect for either buying or selling a condo. Whether you are looking for a home or planning to sell and move on, you can still get the most from today's condo market.
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